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Much has been written lately about Apple falling out with Adobe. Here’s my version of that story.

Apple is always keen to get its customers pushed forward to the next release of their operating system. In the most recent case, they offered a very cheap mini-upgrade which didn’t even change its name all that much (Leopard to Snow Leopard). This is important for Apple, because it makes life better for developers coding for the platform, and, remember? Developer, developers, developers, de… you get the picture.

Adobe put a dent in Apple’s plans when they caused a kerfuffle about possible incompatibilities of CS3 or even CS4 with Snow Leopard. This may have put some customers off upgrading, and detracted from Apple’s long-term strategy. I could fully understand this if Adobe felt they had been loyal partners to Apple all along, and were now being left out on the iPhone. Perhaps Adobe never really understood, or perhaps had no tolerance for, the fact that Apple’s reasons for leaving out Flash are far deeper. The reason is myspace, youtube, and facebook: music! Apple budged a little bit when offering H.264 encoded videos in a special Youtube application, but the key here was that Apple could keep tabs on what was and wasn’t added, and could prevent both hit singles and blockbusters being shared free of (its) charge.

Apple knew that Adobe would be mad that Flash isn’t going to be on the iPad either, so Steve decided to lead a pre-emptive strike by shouting very loudly about how terribly Apple has suffered at the hands of evil Flash (my observation is that no browser crashes as frequently and effectively as Safari, and to make things worse, it doesn’t have any recovery either, but that’s just a by-the-by for Steve’s personal introspection).

Meanwhile, the fact that Adobe keeps a product-for-product edge in market share over Apple’s Pro apps (Aperture, Final Cut Studio, Logic Studio) would be that Adobe also serves Windows customers. So in spite of the fact that Adobe’s files are not always compatible cross-platform (well, neither so are Microsoft’s), they do at least give themselves this appearance. How to describe Adobe’s position? Well, it needs to make sure that it is tolerated on the growing Mac platform. However, at least for the time being, Apple can’t afford to lose Adobe. Adobe stands to lose the most coercive product from its lineup if the web of the future doesn’t do Flash, but if youtube et al found their way unencumbered onto Apple’s mobile devices (via jailbreaking perhaps), Apple would lose a big chunk of its iTunes store revenue. So these two companies can hurt each other a lot, and at the moment it doesn’t look like Apple is going to play nice (all the while taking the mickey out of Google – not that I have any sympathy for that latter company given its recent anti-privacy antics).